Fatah, considered the "moderate sic Palestinians," have no plans for recognizing Israel.
"We will maintain the resistance option in all its forms and we will not recognize Israel," senior Fatah official Rafik al-Natsheh said. "Not only don't we demand that anyone recognize Israel; we don't recognize Israel ourselves. However, the Palestinian Authority government is required to do it, or else it will not be able to serve the Palestinian people."
There's nothing vague or subtle. You can't make peace with people like that. The problem is with the Arabs, not with us Israelis. Israel is not at war, but the Arabs are.
Actually we'd have peace if we'd only fight to the finish and defeat the terrorists. You can't have peace with people who don't recognize your right to exist and live in freedom and security.